E-City Ventures, the cinema exhibition and real estate arm of Essel group and owner of Fun Multiplex chain plans to invest around Rs 150 crore this year on its film exhibition business. The investment of E-City Ventures on the exhibition business is expected to touch Rs 600 crore in the coming five years, Atul Goel, managing director, E-City Ventures told FE.
On being asked about geographical expansion plans this year, Goel said, ?Much of our investment activities this year will be concentrated in Tamil Nadu. The decision of focusing on the state is partly determinedby the tax benefits one enjoys there.?
In Tamil Nadu, Tamil content is exempted from entertainment tax while entertainment tax is imposed at the rate of 50% on Hindi content in States like MP, Rajasthan and UP. This makes Tamil Nadu a lucrative destination to invest in cinema infrastructure.
E-City Ventures plans to roll out 1,500 screens (of which there will be 250 multiplex under their premium brand Fun Multiplex, 250 singlescreen refurbishment under their value brand – Talkie Town and 1,000 under digital format) by 2011.Currently, the company operates 56 cinema screens in 14 cities under Fun Multiplex and Talkies Town brand, and 110 screens under digital format. E-City Ventures has already signed additional 150 screens in approximately 24 cities across the country which will be operational by 2009. It also has plans to acquire additional 300 screens during the course of 2008-09 under both formats, totaling its screen count to 500 by 2011 under the Fun Multiplex and Talkie Town format.
Of the total 1,500 screens planned, about 70% would be located in tier II and tier III cities of the country. According to estimates, cities and towns other than metro still constitute more than 75% of box office collections.